Correlation Between Putnam Panagora and Western Asset
Can any of the company-specific risk be diversified away by investing in both Putnam Panagora and Western Asset at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Putnam Panagora and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Panagora Risk and Western Asset Municipal, you can compare the effects of market volatilities on Putnam Panagora and Western Asset and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Putnam Panagora with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Panagora and Western Asset.
Diversification Opportunities for Putnam Panagora and Western Asset
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and Western is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Panagora Risk and Western Asset Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Municipal and Putnam Panagora is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Putnam Panagora Risk are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Municipal has no effect on the direction of Putnam Panagora i.e., Putnam Panagora and Western Asset go up and down completely randomly.
Pair Corralation between Putnam Panagora and Western Asset
Assuming the 90 days horizon Putnam Panagora Risk is expected to generate 1.34 times more return on investment than Western Asset. However, Putnam Panagora is 1.34 times more volatile than Western Asset Municipal. It trades about 0.09 of its potential returns per unit of risk. Western Asset Municipal is currently generating about 0.02 per unit of risk. If you would invest 751.00 in Putnam Panagora Risk on September 4, 2024 and sell it today you would earn a total of 8.00 from holding Putnam Panagora Risk or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 6.26% |
| Values | Daily Returns |
Putnam Panagora Risk vs. Western Asset Municipal
Performance |
| Timeline |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Western Asset Municipal |
Putnam Panagora and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Panagora and Western Asset
The main advantage of trading using opposite Putnam Panagora and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Panagora position performs unexpectedly, Western Asset can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Western Asset will offset losses from the drop in Western Asset's long position.| Putnam Panagora vs. Western Asset Municipal | Putnam Panagora vs. Rbc Microcap Value | Putnam Panagora vs. Abr 7525 Volatility | Putnam Panagora vs. Rbb Fund |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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